WEEK 1
READINGS – CH1,3 and 4
SDG’s will guide the world’s future course of economic and social development in the coming
generation. Sustainable development recommends a holistic framework in which society aims
for economic prosperity, social inclusion and environmental sustainability goals.
- Growing world economy is creating environmental crisis → threatens lives and
wellbeing of humans and wildlife
- With the SDG goals extreme poverity is elimanted
- Social trust encouraged through politics
- Environment protected from human-induced degradation
- Provision of social services (healthcare and education)
Sustainable development can be defined as meeting the needs of the present without
compromising the ability of future generations to meet their own needs. SDG calls for:
1. Social (socially inclusive)
2. Economic
3. Enviromental (earth systems)
4. Governance (extra)
Technological Change
How new technology can help achieve sustainable development. Three aspects of technology;
- Technology advances are the main driver of long term global economic growth
(combust engine, electricity, ICT).
- Technological advances often have negative side effects (burning coal and CO2)
- Technological advance us under human guidance. Governments can steer technology
and innovations and should do that in the targeted direction.
Concerns about distribution of wellbeing
1. Extreme poverty
2. Inequility
3. Social mobility
4. Discrimintation
5. Social cohesion
Pollution contrail achieves three aims;
1. High output
2. More fairness
3. More sustainability
GDP measures:
1. production inside the boundaries of a country (not income
GNP)
2. Measures output at market prices
• Only goods transacted in the market economy
• Only growth rate in rise of GDP per capita is interesting
• Rose after industrial revolution (hockeystick graph)
3. Improvement in public health
GWP = gross world product (GWP per capita x world population)
PPP = purchasing power parity
1
,The recent growth of China
Since 1978 China has been the fastest growing economy in history. In places with urbanization
it led to low fertility rates, increasing life expectancy, education and public health. But not all
is well; mass migration, inequality, massive pollution.
Improvements in Global Health
Higher incomes led to more food security, health technologies, medical advances,
vaccinations etc. Life expectancy has increased worldwide, child mortality lowered but still
high and diseases still kills many people around the world.
- Infant mortality: dying before their first birthday
Increase in GDP has certainly increased wellbeing worldwide but is not sufficient to ensure
wellbeing. Inclusion and environmental sustainability needed.
• Rule 70: number of years to double the economy
Continuing Poverty in the Midst of Plenty
Parts of the world remain stuck in poverty. Extreme poverty is when you cannot meet your
basic needs, survival.
→ This appears both in rural and urban areas and mostly in Sub-Saharan African countries.
→ Also India, Pakistan, Nepal and Bangladesh score low.
→ Landlocked countries more often have high poverty numbers as economic growth is harder
in landlocked countries. Infant mortality rates are also an indication of poverty.
Total world output = sum of GDP in each country
1. GDP per person in the world
2. World population
Start (industrial) revolution
1. Social and technical innovations imported
2. Agricultural productivity started to rise → more urbanization
3. Sophisticated market established
4. Steam engine
a. Major breakthrough economic growth → new forms of transportation and
innovations available → endogenous growth (economic advancement that
emerges from the internal workings of the economy)
5. Railway building and steel production
6. Age of electricity
7. Development of aviation, cars and automobiles
8. ICT → digital revolution
9. Sustainable technology and development
Geographic location matters, and to receive ripples of other high-income countries
• The closer to the UK (or Japan) the faster the ripples reaches a country such as NL
• Flying geese model → one in front, other follows (economic development Asia)
Reasons for early or late industrialization
• Climate zone mattered
• Geopolitics
• Agricultural conditions
• Disease burden
2
,Poverty checklist
1. Poverty trap (and how to escape it)
o Government borrows funds it needs for public investments and counts on future
economic growth.
o Foreign help in financing temporarily, as growth comes the aid can be
decreased and eliminated eventually; development assistance.
2. Bad economic policies
o Wrong investment strategy
3. Financial insolvency of the government
o Overspending
o Bankruptcy
4. Physical geography
o Landloacked
o Natural disasters
5. Poor governance
o Corruption
o Important for infrastructure and anything necessary for any economy to
develop
6. Cultural barriers
o Discrimination against women
7. Geopolitics
o A country’s political and security relations with its neighbours
8. Politics/governance
GDP per capita strongly correlatis with tropical countries
o Beig near major rivers or ports is a key to vibrant economy
o Large contitental countries have disadvantage such as landlocked african
countries
o Energy and oil such as coal reserves plays a large role in economies
o Oil-rich countries badly mismaning their resources wealth leading to corruption
o Africa affected by high temperatus, heavy rainfall and deadly mosquito leading
to lower economy
3
, LECTURE 1
Economic growth
Crowded, unequal, degraded planet
Anthropocene: human activity drives the earth’s physical change
Measuring the standard of living → big mac index (price varies per country)
GDP: gross domestic product (GDP per capita at PPP in constant prices)
1. Divide by population
2. Correct for inflation
3. Correct for international differences in price levels (PPP)
GDP is an estimate of the total value of finished goods and services produced within a
country's borders during a specified period,
Growth rate higher: catch up growth especially in poor countries (example India)
History of growth
From end of 18th century: sustained economic growth
- Industrial revolution
Sustainable development
Development that meets the needs of the present generation without compromising the
ability of future generations to meet their own needs
Welfare is distributed unequally:
1. Economic growth is a recent phenomenon
2. Growth and standard of living differ considerably between
countries, Africa lagging behind
4
READINGS – CH1,3 and 4
SDG’s will guide the world’s future course of economic and social development in the coming
generation. Sustainable development recommends a holistic framework in which society aims
for economic prosperity, social inclusion and environmental sustainability goals.
- Growing world economy is creating environmental crisis → threatens lives and
wellbeing of humans and wildlife
- With the SDG goals extreme poverity is elimanted
- Social trust encouraged through politics
- Environment protected from human-induced degradation
- Provision of social services (healthcare and education)
Sustainable development can be defined as meeting the needs of the present without
compromising the ability of future generations to meet their own needs. SDG calls for:
1. Social (socially inclusive)
2. Economic
3. Enviromental (earth systems)
4. Governance (extra)
Technological Change
How new technology can help achieve sustainable development. Three aspects of technology;
- Technology advances are the main driver of long term global economic growth
(combust engine, electricity, ICT).
- Technological advances often have negative side effects (burning coal and CO2)
- Technological advance us under human guidance. Governments can steer technology
and innovations and should do that in the targeted direction.
Concerns about distribution of wellbeing
1. Extreme poverty
2. Inequility
3. Social mobility
4. Discrimintation
5. Social cohesion
Pollution contrail achieves three aims;
1. High output
2. More fairness
3. More sustainability
GDP measures:
1. production inside the boundaries of a country (not income
GNP)
2. Measures output at market prices
• Only goods transacted in the market economy
• Only growth rate in rise of GDP per capita is interesting
• Rose after industrial revolution (hockeystick graph)
3. Improvement in public health
GWP = gross world product (GWP per capita x world population)
PPP = purchasing power parity
1
,The recent growth of China
Since 1978 China has been the fastest growing economy in history. In places with urbanization
it led to low fertility rates, increasing life expectancy, education and public health. But not all
is well; mass migration, inequality, massive pollution.
Improvements in Global Health
Higher incomes led to more food security, health technologies, medical advances,
vaccinations etc. Life expectancy has increased worldwide, child mortality lowered but still
high and diseases still kills many people around the world.
- Infant mortality: dying before their first birthday
Increase in GDP has certainly increased wellbeing worldwide but is not sufficient to ensure
wellbeing. Inclusion and environmental sustainability needed.
• Rule 70: number of years to double the economy
Continuing Poverty in the Midst of Plenty
Parts of the world remain stuck in poverty. Extreme poverty is when you cannot meet your
basic needs, survival.
→ This appears both in rural and urban areas and mostly in Sub-Saharan African countries.
→ Also India, Pakistan, Nepal and Bangladesh score low.
→ Landlocked countries more often have high poverty numbers as economic growth is harder
in landlocked countries. Infant mortality rates are also an indication of poverty.
Total world output = sum of GDP in each country
1. GDP per person in the world
2. World population
Start (industrial) revolution
1. Social and technical innovations imported
2. Agricultural productivity started to rise → more urbanization
3. Sophisticated market established
4. Steam engine
a. Major breakthrough economic growth → new forms of transportation and
innovations available → endogenous growth (economic advancement that
emerges from the internal workings of the economy)
5. Railway building and steel production
6. Age of electricity
7. Development of aviation, cars and automobiles
8. ICT → digital revolution
9. Sustainable technology and development
Geographic location matters, and to receive ripples of other high-income countries
• The closer to the UK (or Japan) the faster the ripples reaches a country such as NL
• Flying geese model → one in front, other follows (economic development Asia)
Reasons for early or late industrialization
• Climate zone mattered
• Geopolitics
• Agricultural conditions
• Disease burden
2
,Poverty checklist
1. Poverty trap (and how to escape it)
o Government borrows funds it needs for public investments and counts on future
economic growth.
o Foreign help in financing temporarily, as growth comes the aid can be
decreased and eliminated eventually; development assistance.
2. Bad economic policies
o Wrong investment strategy
3. Financial insolvency of the government
o Overspending
o Bankruptcy
4. Physical geography
o Landloacked
o Natural disasters
5. Poor governance
o Corruption
o Important for infrastructure and anything necessary for any economy to
develop
6. Cultural barriers
o Discrimination against women
7. Geopolitics
o A country’s political and security relations with its neighbours
8. Politics/governance
GDP per capita strongly correlatis with tropical countries
o Beig near major rivers or ports is a key to vibrant economy
o Large contitental countries have disadvantage such as landlocked african
countries
o Energy and oil such as coal reserves plays a large role in economies
o Oil-rich countries badly mismaning their resources wealth leading to corruption
o Africa affected by high temperatus, heavy rainfall and deadly mosquito leading
to lower economy
3
, LECTURE 1
Economic growth
Crowded, unequal, degraded planet
Anthropocene: human activity drives the earth’s physical change
Measuring the standard of living → big mac index (price varies per country)
GDP: gross domestic product (GDP per capita at PPP in constant prices)
1. Divide by population
2. Correct for inflation
3. Correct for international differences in price levels (PPP)
GDP is an estimate of the total value of finished goods and services produced within a
country's borders during a specified period,
Growth rate higher: catch up growth especially in poor countries (example India)
History of growth
From end of 18th century: sustained economic growth
- Industrial revolution
Sustainable development
Development that meets the needs of the present generation without compromising the
ability of future generations to meet their own needs
Welfare is distributed unequally:
1. Economic growth is a recent phenomenon
2. Growth and standard of living differ considerably between
countries, Africa lagging behind
4
